Bloomberg Economics: Rising Private Sector Spending, Fiscal Stimulus Boost Non-Oil Economy

Rising private sector consumption and government fiscal stimulus measures are expected to give a boost to the non-oil Saudi economy, Bloomberg Economics reports.

“BE expects non-oil growth to average 2.6% this year, up from 2.1% in 2018, helped by fiscal stimulus, a lower drag from monetary policy and improved private consumption,” the outlet revealed in a heat map of economic growth across Saudi Arabia.

The growth has reached levels not seen since before the government’s crackdown on corruption in November 2017, Bloomberg said.

Jadwa Investment’s recently-released monthly chartbook for May 2019 showed positive signs for the Saudi economy in nearly every indicator.

Billions of dollars are pouring into Saudi Arabia’s economy as the Kingdom continues forward with plans to open up to more outside investment and inflows. MSCI Inc., the U.S.-based index compiler, will soon classify Saudi Arabia with “emerging market” status.

The International Monetary Fund (IMF) estimates that Saudi Arabia’s economic growth in 2019 may be slightly higher than its earlier 1.8 percent forecast as the non-oil sector continues to expand.